India's stock market tumbled on Friday joining a global retreat as an escalating military conflict involving the United States, Israel, and Iran sent shockwaves through energy markets and dismantled investor appetite for risk.
The benchmark BSE Sensex dropped 0.45% to 79,658.99 in early Mumbai trading, retreating from the psychologically significant 80,000 level. The Nifty 50 Index saw a similar decline, falling 0.44% to 24,656.4.
The selloff was broad-based, with 13 of the 16 major sectoral indices logging losses at the open.
Geopolitical tensions have revived fears of a 1970s-style energy supply shock, with Brent crude surging approximately 5% on Thursday to hit a 20-month high of $86.28 a barrel.
Financial stocks, which carry the largest weightage in the domestic indices, bore the brunt of the selling pressure, with HDFC Bank Ltd. and ICICI Bank Ltd. down 1.1% and 1.4%, respectively.
The risk-off sentiment extended to the broader market, though mid-cap and small-cap stocks showed slightly more resilience, falling 0.2% and 0.1%, respectively.
The cloud over global growth outlooks is darkening, and for India, the trajectory of the Nifty 50 in the coming sessions will likely depend on the stability of the "GIFT Nifty" levels and whether crude prices find a new floor or continue their ascent toward $90.
